An Entity That Processes Checks and Electronic Fund Transfers for Banks

question 46

Multiple Choice

An entity that processes checks and electronic fund transfers for banks and other financial organizations is called a _____.

• A) credit union
• B) clearinghouse
• C) float
• D) bearer

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Definitions:

Treynor-Black Model

The Treynor-Black Model is a portfolio optimization method that combines actively selected securities with a passively managed market portfolio for better risk-adjusted returns.

Macroeconomic Risks

Risks that arise from changes in economic policies, political stability, or other macroeconomic factors that can impact the overall market.

Microeconomic Risks

Risks associated with the effects of market mechanisms on supply and demand, influencing individual decisions in small-scale economies.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players.